Homework Answers
a.
| Date | Account Titles | Debit | Credit |
| Dec 31 | Loss on investment in Laser Company | 400000 | |
| Investment in Laser Company | 400000 | ||
| [1,500,000-1,100,000] | |||
| Dec 31 | Loss on investment in FourSquare Company | 800000 | |
| Investment in FourSquare Company | 800000 | ||
| [3,300,000-2,500,000] |
b.
| Date | Account Titles | Debit | Credit |
| Dec 31 | Loss on investment in Laser Company | 100000 | |
| Investment in Laser Company | 100000 | ||
| [1,500,000-1,400,000] | |||
| Dec 31 | Loss on investment in FourSquare Company | 350000 | |
| Investment in FourSquare Company | 350000 | ||
| [3,300,000-2,950,000] |
c.
| Date | Account Titles | Debit | Credit |
| Dec 31 | Loss on available for sale securities | 900000 | |
| Available for sale securities | 900000 |
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E17.22 (LO 4) (Impairment) Elaina Company has the following investments as of December 31, 2020: Investments...
Crane Company has the following investments as of December 31, 2020:
Crane Company has the following investments as of December 31, 2020:Investments in common stock of Laser Company$1,540,000Investment in debt securities of FourSquare Company$3,590,000In both investments, the carrying value and the fair value of these two investments are the same at December 31, 2020. Crane’s stock investments does not result in significant influence on the operations of Laser Company. Crane’s debt investment is considered held-to-maturity. At December 31, 2021, the shares in Laser Company are valued at $1,120,000; the debt investment securities of FourSquare...
Splish Company has the following investments as of December 31, 2020: Investments in common stock of...
Splish Company has the following investments as of December 31, 2020: Investments in common stock of Laser Company $1,540,000 Investment in debt securities of FourSquare Company $3,590,000 In both investments, the carrying value and the fair value of these two investments are the same at December 31, 2020. Splish’s stock investments does not result in significant influence on the operations of Laser Company. Splish’s debt investment is considered held-to-maturity. At December 31, 2021, the shares in Laser Company are valued...
Sheridan Company has the following investments as of December 31, 2020: Investments in common stock of...
Sheridan Company has the following investments as of December 31, 2020: Investments in common stock of Laser Company Investment in debt securities of FourSquare Company $1,630,000 $3,240,000 In both investments, the carrying value and the fair value of these two investments are the same at December 31, 2020. Sheridan's stock investments does not result in significant influence on the operations of Laser Company. Sheridan's debt investment is considered held-to-maturity. At December 31, 2021, the shares in Laser Company are valued...
Up ence betwe en (b) Record the journal entry, if any, necessary at Det E17-22 (L04)...
Up ence betwe en (b) Record the journal entry, if any, necessary at Det E17-22 (L04) (Impairment) Elaina Company has the following investments as of December JI, Investments in common stock of Laser Company $1,500,000 Investment in debt securities of FourSquare Company $3,300,000 In both investments, the carrying value and the fair value of these two investments are the same at December stock investments does not result in significant influence on the operations of Laser Company. Elaina's debt in ered...
E1.14 Impairment of AFS and HTM Investments, U.S. GAAP and IFRS Assume The Coca-Cola Lo1,4 Company...
E1.14 Impairment of AFS and HTM Investments, U.S. GAAP and IFRS Assume The Coca-Cola Lo1,4 Company reports the following investments at December 31, 2016. prior to any required end-of-year valuation adjustments: Investment in debt securities. 600,000 Coca-Cola classifies its investment in cquity securitics as AFS, and its investment in debt securities as HTM. The December 31,2016, fair value of the equity securities is $1,000,000, and the fair value of the debt securities is $400,000. Required The equity securities were originally...
Presented below is information related to copyrights owned by Taylor Corporation at December 31, 2020. Carrying...
Presented below is information related to copyrights owned by Taylor Corporation at December 31, 2020. Carrying amount 7,000,000 Expected future net cash flows 6,200,000 Fair value 3,300,000 Assume Taylor will continue to use this asset in the future. As of December 31, 2020, the copyrights have a remaining useful life of 5 years. Instructions (a) Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2020. (b) Prepare the journal entry to record amortization expense for...
Sunland Company has the following securities in its portfolio on December 31, 2020. None of these...
Sunland Company has the following securities in its portfolio on
December 31, 2020. None of these investments are accounted for
under the equity method.
Investments
Cost
Fair Value
1,500 shares of Gordon, Inc., Common
$79,600
$74,700
5,000 shares of Wallace Corp., Common
170,900
165,800
400 shares of Martin, Inc., Preferred
65,800
67,200
$316,300
$307,700
All of the securities were purchased in 2020.
In 2021, Sunland completed the following securities
transactions.
March 1
Sold the 1,500 shares of Gordon, Inc., Common,...
Marigold Company has the following securities in its portfolio on December 31, 2020. None of these...
Marigold Company has the following securities in its portfolio on December 31, 2020. None of these investments are accounted for under the equity method. Investments Cost Fair Value 1,500 shares of Gordon, Inc., Common $69,700 $65,500 5,000 shares of Wallace Corp., Common 193,400 188,300 400 shares of Martin, Inc., Preferred 60,300 61,800 $323,400 $315,600 All of the securities were purchased in 2020. In 2021, Marigold completed the following securities transactions. March 1 Sold the 1,500 shares of Gordon, Inc., Common,...
Blue Company has the following securities in its portfolio on December 31, 2020. None of these...
Blue Company has the following securities in its portfolio on December 31, 2020. None of these investments are accounted for under the equity method. Investments Cost Fair Value 1,500 shares of Gordon, Inc., Common $76,900 $72,500 5,000 shares of Wallace Corp., Common 195,800 190,400 400 shares of Martin, Inc., Preferred 61,700 63,500 $334,400 $326,400 All of the securities were purchased in 2020. In 2021, Blue completed the following securities transactions. March 1 Sold the 1,500 shares of Gordon, Inc., Common,...
Sage Company has the following securities in its portfolio on December 31, 2020. None of these...
Sage Company has the following securities in its portfolio on
December 31, 2020. None of these investments are accounted for
under the equity method.
Investments
Cost
Fair Value
1,500 shares of Gordon, Inc.,
Common
$77,600
$73,200
5,000 shares of Wallace
Corp., Common
172,900
167,700
400 shares of Martin, Inc.,
Preferred
63,500
65,100
$314,000
$306,000
All of the securities were purchased in 2020.
In 2021, Sage completed the following securities
transactions.
March 1
Sold the 1,500 shares of
Gordon, Inc., Common,...
Sheridan Company has the following investments as of December 31, 2020: Investments in common stock of Laser Company Investment in debt securities of FourSquare Company $1,630,000 $3,240,000 In both investments, the carrying value and the fair value of these two investments are the same at December 31, 2020. Sheridan's stock investments does not result in significant influence on the operations of Laser Company. Sheridan's debt investment is considered held-to-maturity. At December 31, 2021, the shares in Laser Company are valued...
Up ence betwe en (b) Record the journal entry, if any, necessary at Det E17-22 (L04) (Impairment) Elaina Company has the following investments as of December JI, Investments in common stock of Laser Company $1,500,000 Investment in debt securities of FourSquare Company $3,300,000 In both investments, the carrying value and the fair value of these two investments are the same at December stock investments does not result in significant influence on the operations of Laser Company. Elaina's debt in ered...
E1.14 Impairment of AFS and HTM Investments, U.S. GAAP and IFRS Assume The Coca-Cola Lo1,4 Company reports the following investments at December 31, 2016. prior to any required end-of-year valuation adjustments: Investment in debt securities. 600,000 Coca-Cola classifies its investment in cquity securitics as AFS, and its investment in debt securities as HTM. The December 31,2016, fair value of the equity securities is $1,000,000, and the fair value of the debt securities is $400,000. Required The equity securities were originally...
Sunland Company has the following securities in its portfolio on
December 31, 2020. None of these investments are accounted for
under the equity method.
Investments
Cost
Fair Value
1,500 shares of Gordon, Inc., Common
$79,600
$74,700
5,000 shares of Wallace Corp., Common
170,900
165,800
400 shares of Martin, Inc., Preferred
65,800
67,200
$316,300
$307,700
All of the securities were purchased in 2020.
In 2021, Sunland completed the following securities
transactions.
March 1
Sold the 1,500 shares of Gordon, Inc., Common,...
Sage Company has the following securities in its portfolio on
December 31, 2020. None of these investments are accounted for
under the equity method.
Investments
Cost
Fair Value
1,500 shares of Gordon, Inc.,
Common
$77,600
$73,200
5,000 shares of Wallace
Corp., Common
172,900
167,700
400 shares of Martin, Inc.,
Preferred
63,500
65,100
$314,000
$306,000
All of the securities were purchased in 2020.
In 2021, Sage completed the following securities
transactions.
March 1
Sold the 1,500 shares of
Gordon, Inc., Common,...
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